PHILADELPHIA - Axalta Coating Systems Ltd . (NYSE:AXTA), a leader in the global coatings industry, has reported a notable increase in its adjusted earnings per share (EPS) for the first quarter of 2024, surpassing analyst expectations.
The company announced an adjusted EPS of $0.48, which is $0.07 higher than the analyst estimate of $0.41. Revenue also exceeded forecasts, reaching $1.3 billion against the predicted $1.29 billion. AXTA stock was trading up 4.4% premarket following the earnings release.
The first quarter saw a modest year-over-year (YoY) net sales increase of 0.8%, with net income experiencing a decline of $22 million to $39 million, primarily due to restructuring charges of $55 million associated with the 2024 Transformation Initiative. Despite these charges, the company's adjusted net income improved by $27 million YoY. Adjusted EBITDA reached a first-quarter record of $259 million, a significant rise from the prior year's $213 million, with the adjusted EBITDA margin improving by 340 basis points to 20.0%.
Axalta's CEO and President, Chris Villavarayan, commented on the results, stating, "This was another strong quarter for Axalta. We are executing well and I am confident in our trajectory this year as we target record earnings for the second consecutive year." He also expressed the company's focus on strategic actions to accelerate long-term value and announced an increase in the full-year 2024 guidance for adjusted EBITDA, adjusted EPS, and free cash flow.
Looking ahead to the second quarter of 2024, Axalta anticipates net sales growth between 3% and 5% and has set its adjusted diluted EPS guidance at approximately $0.50, which is slightly above the analyst consensus of $0.48. The company's performance in the first quarter and optimistic guidance reflect its effective management and strategic initiatives, positioning Axalta for continued success in the coatings industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.